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The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 90,000 wheels annually Direct materials Direct labor Variable

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The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 90,000 wheels annually Direct materials Direct labor Variable manufacturing overhead Fored manufacturing overhead $18,000 $27000 $13,500 $57000 An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier. $12.000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $32.100 per year. Direct laboris a variable cost. At what purchase price for the wheels would Talbot be indifferent between making or buying the wheels? (Round your answer to 2 decimal places) O $078 O $128 51.14 O $1.09

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